If you are in need of emergency cash because of financial problems, there are options. If you own a vehicle that is paid off (or close to being paid off), you have the possibility of taking out a car title loan. These types of loans have become more popular over the last decade, and it is easy to see why. Here’s a look at the pros and cons of car title loans.
- No worries about credit.
Lenders do not base eligibility for a car title loan upon a borrower’s credit score or credit history. Since you use a vehicle as collateral, there is no need to check a person’s credit. Embassy Loans does not need to review an applicant’s credit history to process the loan. A borrower must prove his or her identity and prove that they own the vehicle. If they can do that, they can qualify for a car title loan. This kind of loan is ideal for people who have poor credit. They still have an option when it comes to borrowing money.
A traditional loan from a bank may take several weeks to close. Since a car title loan does not require credit checks, there is not as much paperwork and loans can be closed much quicker. At Embassy Loans, many title loans are completed within an hour. Borrowers can have access to much-needed cash and have it within a few days in many cases.
- Flexible rates and terms.
At Embassy Loans, you get low rates and the ability to work out flexible repayment terms. If you don’t repay your loan by the end of the term, you also have the potential to extend the term. Traditional loans are not nearly as flexible.
- Drive your vehicle.
Just because you are using a car as collateral does not mean that you have to give up using it. A car title loan is not like pawning it. You put up the title to the vehicle as collateral, but you still retain possession and the ability to use it. You go about our normal everyday life, use your car, and repay your loan.
The biggest drawback of a car title loan is that you can have your vehicle taken from you. That only happens if you fail to repay the loan. Embassy Loans would have the right to take possession of the vehicle in that case. They would then sell the vehicle to recover the losses associated with the default of the loan.